The table shows the projected rate of return and number of investment projects that might be undertaken by a small firm. Each project requires an investment of $1,000. If the interest rate increases from 5 percent to 15 percent, the amount of loanable funds demanded by this firm
A) increases by $1,000.
B) increases by $3,000.
C) decreases by $2,000.
D) decreases by $3,000.
Correct Answer:
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